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Government Subsidies and Alternative Fuel Technologies
The government should not subsidize alternative fuel options. This is due to the fact that a free market that follows the basic supply and demand curve should be allowed to function as a product of the available technology. This is to say that fossil fuels and other related fuels will continue to stay in demand as long as there is a supply of them and the willingness to pay. Government subsidies disrupt the supply curve as well as the willingness to pay for alternative fuels. Such subsidies create incentives to follow and develop technologies which themselves have no natural market based upon principles of supply and demand.
Technology itself cannot create a new future, s to speak. However, humans, armed with the proper technology and free market dynamics can. This means that as humans develop new technologies, and these technologies become cheaper and more readily available, people's willingness to pay drops, sending the demand...
This in turn creates an incentive for companies and individuals to develop technologies as cheaply and as quickly as possible in order to take advantage of the demand for such technologies. Once the demand for fossil fuels subsides due to scarcity or other environmental concerns, other technologies will emerge naturally, due to free market forces. Government subsidies only get in the way of free market forces and force both developers and consumers down a specific, often politically driven path relative to technology.
Incentives for businesses to adopt new technology are usually fiscal in nature. This means that unless the market can support a technology, from a demand standpoint, it won't be pursued or pushed any further. This can sometimes limit the types of technological exploration but it guarantees that first a market will exist for such technologies and that the government subsidies are not creating an artificial demand or market for something that…
Concerns about the availability of fuel also slows adoption. In a simulation representing California, entrepreneurs opened alterative fuel stations in urban areas but not in less-populated rural areas where demand is initially lower. According to Science Daily (2007), urban alternative fuel drivers must then avoid the rural areas, reducing the appeal of alternative fuel vehicles and slowing their sales everywhere. In theory, the fuel efficiency of alternative fuel vehicles
(Reich, 2009) The Japanese Government to Business Model The Japanese government has more direct control of private business. The difference is that it is doing so, as a partner to ensure that the business is able to maintain successful long-term economic growth. The government does not offer subsidies or any kind of bail outs. Instead, they help companies through loans, tax breaks and other forms of assistance. This helped to contribute to
In the drive to discover new fuels and cheaper alternatives to driving the fact of the matter is that roads will still have to be maintained, and if the consumer is purchasing less fuel by driving fuel efficient cars, then other taxes will have to be raised or implemented to pay for the roads. A recent study concluded that "more efficient cars and trucks still take up space on the highways
Alternative Energy Sources Concerns that have been raised regarding energy security have been occasioned by fears about oil and other fossil fuel depletion; reliance on foreign sources of energy; geopolitics; developing countries' energy needs; environmental concerns; population dynamics; and renewable and other alternative energy sources (Shah, 2011). This essay seeks to establish whether alternative energy sources can help ease human reliance on oil. It is important that governments invest on alternative sources
Government Role Renewable energy and sustainable development Why Australian Government should lead the initiative? Governmental initiatives Supply side interventions: Rebates and feed-in tariffs Renewable energy is derived from sources that are naturally replenish-able and supply of energy from these sources is infinite. The main purposes served by using renewable energy are many such as generation of power, transport fuel production, and for heating of houses and other living places. Except the naturally occurring main difference
4). Likewise, in the same article, Kay Martin of the Ventura County, California public works agency is quoted as saying, "From a macroeconomics or macro-environmental perspective, it just makes sense." The need to build an infrastructure for production of bio-fuels creates economic opportunities. Of course, not everybody is so enthusiastic. To grow corn, diesel tractors are required to plant, fertilize and harvest it with substantial coal-fired electricity needed for the